Engaging the Nonstop Customer. September 2013

Transcription

1 Engaging the Nonstop Customer September 2013

2 Introduction Anders Teigar Jacobsen Accenture Management Consulting Sales & Customer Services practice Oslo, Norway MsC in Marketing from the Norwegian School of Management BI E-post: Telefon: Copyright 2013 Accenture. All rights reserved. 2

3 Why do love these companies so much Copyright 2013 Accenture. All rights reserved. 3

4 Their customers are saying. «they deliver what is most important to me» «and tend to focus less on what that does not matter» «they are consistent in what they deliver and what they promise..» «they are innovative,,,» Copyright 2013 Accenture. All rights reserved. 4

5 but most companies struggle hard to succeed with customer experience management. Copyright 2013 Accenture. All rights reserved. 5

6 Session Objectives Explore the changing customer journey Introduce a new model of customer choice Illustrate three ways to exploit these shifts Copyright 2013 Accenture. All rights reserved. 6

7 Technology adoption has dramatically changed the customer journey Customer journeys are now Faster pace Non-linear progression 4 Seconds customers had for purchasing a one-time offer on Speedsale.com (closed) More DYNAMIC Effortless decisions and lower barriers 22% Consumers who use mobile phones to compare prices while shopping in-store Noisier Greater array of choices 63% Consumers who use online review or comparison sites More ACCESSIBLE Diminished impact of brand-owned marketing 29% Consumers who report writing negative reviews after bad experiences Increasingly CONTINUOUS Decisions are less final Easy to retreat back to evaluation Customers evaluating the whole experience 80% 78% Consumers find themselves re-evaluating purchase choices more than 2 years ago Consumers are likely to switch provider when promises made are not delivered Copyright 2013 Accenture. All rights reserved. Source: Accenture Global Consumer Pulse Research

8 The Traditional Model Under Fire. Is the Sales Funnel applicable for describing the customer experience? The Funnel Discover More DYNAMIC Consider More ACCESSIBLE Evaluate Increasingly CONTINUOUS Purchase Use Copyright 2013 Accenture. All rights reserved. 8

9 Rethinking the customer journey The customer s path to purchase used to be linear. Now, the journey is dynamic, accessible and continuous, a new model is needed to capture changing behaviors. From Traditional Funnel to Accenture Nonstop-Customer Experience Model Discover Consider Discover Discover Evaluation loops Purchase Purchase Purchase Evaluate Expectation Promise Expectation Promise Reality Evaluate Evaluate Delivery Reality Delivery Purchase Consider Consider Consider Use Use Use Use Openly content accessible & channels content Branded Brand-controlled content & channels content Dynamic Paths are multidirectional at different speeds Accessible Influence of open content is pervasive and difficult to control Continuous Evaluation, not purchase, is central; promise vs. delivery matters more Copyright 2013 Accenture. All rights reserved. 9

10 Different Loyalties, Different Implications The model captures the diversity of loyalty profiles which depend on the individual s context. They call for tailored strategies to address implied challenges & opportunities. Illustration of how different loyalty profiles impact behaviors Emotional loyalty Inertia-based loyalty Strong emotional bond to one brand Less likely to shop around Promoting the brand actively Stays in the loyalty loop Staying with brand out of habit Avoid to have to make a choice Less involved with providers Sticks to triedand-true habits Conditional loyalty True deal chasing Aligned to brand under conditions Extend rather than replace providers Greater impact of others, often re-evaluate Easily influenced Least connected to specific brands Shopping around for best deals Attracted by engaging messaging Always evaluating Copyright 2013 Accenture. All rights reserved. 10

11 Different profiles, distinct behaviors Loyalty profile distributions vary by industry as well as by other factors. Understanding the distribution for a specific company enable to better act on distinct behaviors. Conditional loyalty True Deal Chasing Emotional loyalty Inertia-based loyalty Relatively less present in this industry Relatively more present in this industry Copyright 2013 Accenture. All rights reserved. 11 * Based on 2012 Global Consumer Pulse Research, Accenture

12 How to Exploit These Shifts? 1 Understand your customers and their moments of truth 2 Strive to create an individualized customer experience 3 Leverage technology to optimize the experience across channels Copyright 2013 Accenture. All rights reserved. 12

13 ASKO CASE STUDY: The client aimed to increase margins by improving customer satisfaction and loyalty From issue Increased competition within certain products- and services, and competitors were achieving higher profit margins than the client. The client needed facts and methodologies to be able to understand and take action on customer insights to deliver a valuable customer experience. The current customer segments did not help the company to differentiate the customer experience in a profitable and consistent manner. Complex product and service portfolio and complex pricing strategy to outcome Customer insight: The customers most important needs Actionable segmentation model and customer profiling Differentiated value propositions and customer experience Valuable recommendations to further differentiate the product portfolio and customer experience Copyright 2013 Accenture. All rights reserved. 13

14 Customer insight led to the development of better value propositions and custom products and services Copyright 2013 Accenture. All rights reserved. 15

15 The masters identify and quantify the importance of each touchpoint to each segment in high detail Customer Touchpoints Advertising Brand Image Price Customer Service Product & Service Offer Channel In-store experience Public relations Sponsorships Promotions Pricing Customer service Direct marketing Advice Sales force interaction Account start-up Product/service experience Merchandise selection Portal/Web Multi-Level marketing Importance Customer Service Experiences Moment of truth Importance Resolved problem quickly Had answers to questions Complete account information Minimum callbacks Knew my name Brief call Efficient call transfer Copyright 2013 Accenture. All rights reserved. 16

16 How to Exploit These Shifts? 1 Understand your customers and their moments of truth 2 Strive to create an individualized customer experience 3 Leverage technology to optimize the experience across channels Copyright 2013 Accenture. All rights reserved. 18

17 «Next Best Action» uses analytics and technology to provide tailored offers to each customer From traditional marketing where offers are in focus The selected group receives the same offer via the same channel The marketer decides who receives an offer Offer «I have an offer» «Let s find the best group to offer this» To a new type of marketing where customers are in focus Customer insight enables us to define a group or person, which makes it possible to provide targeted marketing messages Offer Offer Offer Offer Customer Profiles determines what offer a group or person receives The selected person or group will receive personalized offers via the preferred channel «I have a person/group» «Let s find the best offer for this person / group» Copyright 2013 Accenture. All rights reserved. 19

18 Example: Give customized retention offers to customers in real-time Churn risk Factors influencing the likelihood of leakage ("Causes") and degree of influence Risk segment 4 Retention action suggested Recent complaints 5% high price compared with similar clients 10% Client A 35% next mortgage maturity poor card use business growth with other entities progressive decline savings balances 0% 40% 5% 10% Poor card use & bidder profile Encourage card use with discounts on purchases Price sensitivity ( bidder profile) 30% Recent complaints 40% high price compared with similar clients 50% 35% next mortgage maturity poor card use 0% 5% High price and recent complaints Gift and price conditions review Client B business growth with other entities progressive decline savings balances 0% 2% Price sensitivity ( bidder profile) 3% Predictive models should not only predict churn risk, but also the cause for each client, allowing a natural connection with the definition of the most appropriate retention action Copyright 2013 Accenture. All rights reserved. 20

19 Verdi Høy Medium Lav xx.xx (2,67%) Selektiv Storhandler xx.xx (1,57%) xx.xx (4,33%) Oppstarter Lav Kundesegment xx.xx (2,08%) xx.xx (2,89%) xx.xx (15,4%) Medium Lav Småsparer xx.xx (5,31%) xx.xx (7,61%) xx.xx (21,56%) Medium Høy xx.xx (12,53%) Storhandler xx.xx (10,70%) Smart Shopper xx.xx (13,35%) Høy Engasjement Implementing Next Best Action requires integration between customer data, analytics and touch-points A1 A2 A3 A4 A5 A6 A7 A8 C1 C2 C3 Customer Insight Analytics Execution C4 Customer Analytic Record C5 C6 C7 C8 Hig h Low Predictive analytics and decision engine Multi-channel and response tracking Enabled data model that includes all the relevant facts and dimensions to support NBA analysis Customer Analytic Record to enable real time decisioning to calculate NBA offers BI reporting to support decision making on product- and service portfolio Organizational Foundation Real time decision engine to configure and execute the business rules and strategies that enable NBA capability Adaptive models used by the engine to optimize the recommendations based on a learning process on previous transactions Real-time integration with CRM system for order fulfillment after NBA offer acceptance Real-time integration with Web Portal or IVR to provide NBA recommendations User friendly and intuitive user interface to support call center and shop agents in the selling process The user interface can work standalone or with a seamless integration with CRM application via iframe or pop-up Business Strategy and rules Performance management Dialogue support Measurement and reporting Copyright 2013 Accenture. All rights reserved. 21

20 How to Exploit These Shifts? 1 Understand your customers and their moments of truth 2 Strive to create an individualized customer experience 3 Leverage technology to optimize the experience across channels Copyright 2013 Accenture. All rights reserved. 22

21 SMS Customers now expect to be served seamlessly across channels companies need to adapt to this reality From.. a traditional Marketing approach Not integrated, offer centric, not contextual, reactive To.. a new Marketing view Where the Customer is always at the center Not differentiated per Customer «One size fits all» approch Non integrated Poorly supported by new technologies Basic Stand alone processdriven approch Lack of advanced customer base managemenent capabilities, Business lines not fully supported in maximizing results SMS App Social Phone Copyright 2013 Accenture. All rights reserved. 23

22 Technology: «Customer Contact Center» is outdated the new norm is «Customer Engagement Center» Keys to success Enabling technology 1. Create the ability to provide service to a customer as it moves among communications channels including social media 2. Always retain the customer's context regardless of previous channel choice 3. Deliver the appropriate business rule in real time to determine the next best action or process with which to engage the customer. By 2015, organizations that have not embraced the concept of the customer engagement center will lose customers to competitors that have. Copyright 2013 Accenture. All rights reserved. 24

23 Conclusion From Traditional Funnel to Accenture Nonstop-Customer Experience Model Three ways to exploit these shifts Understand your customers and their moments of truth Strive to create an individual customer experience Leverage technology to optimize the experience across channels Copyright 2013 Accenture. All rights reserved. 25

24 Seven principles for what makes an effective customer experience 1. Understand the customer s experience, the drivers of customer satisfaction and what constitutes various segments moments of truth 2. Dear to prioritize what really matters 3. Organize for customer journeys, not just mere touchpoints 4. Measurable outcomes linked to the customer experience goals driven (at all levels) 5. Clear and accountable leadership structures with a customer-centric focus 6. Design driven by factual data not by internal executive opinion 7. Industrialization of technology - at the same time of CE developments, you need to be able to be making progress in using technology in the right way 8. Establishes a Voice of the Customer program Copyright 2013 Accenture. All rights reserved. 26

25 Thank you for the attention! Questions Copyright 2013 Accenture. All rights reserved. 27